Reserve Bank of India (RBI) will set up a task force on the offshore rupee markets (offshore non-deliverables forward market – NDF), the size of which is estimated to be over $20 billion according to forex experts. The volatility in the domestic forex market is often attributed to the rates of the rupee in the offshore market, which is used by foreign banks and also Indian companies with an overseas presence. "Simple extension of the forex market to 11 pm and allowing delivery on exchange will do wonders for our forex market. Research by the National Institute of Public Finance and Policy shows India's turnover in the NDF market was at $16.5 billion in 2016, which was 16.7% higher than the 2013 level. They will study the market and understand the reason why the domestic forex market moves with the NDF, how to control the NDF market," said a forex dealer.

Source: dna February 07, 2019 23:26 UTC